User Account

All Pages

What is the net present value of the project

Assignment Help Business Management
Reference no: EM132710048

You are a consultant to a firm evaluating an expansion of its current business. The cash-flow forecasts (in millions of dollars) for the project are as follows. Year 0: initial outlay of 100, Years 1 to 8: 18 each year.

On the basis of the behavior of the firm's stock, you believe that the beta of the firm is 1.2. Assuming that the rate of return available on risk-free investment is 2% and that the expected rate of return on the market portfolio is 12%, what is the (risk-adjusted) net present value of the project?

Reference no: EM132710048

Questions Cloud

How much less in interest would you pay : Pay the minimum of 3.5% down and finance the rest at a rate of 5.5%, How much less in interest would you pay with Option 2 than with Option 1
Discuss the major goals of the family in an report : In an report, discuss the major goals of the family and how would they go about achieving each goal. Specific to how they would achieve each goal
Define scalability : Define scalability. Compare and contrast vertical and horizontal scaling. Discuss the importance of HTML 5.
How much will all the preferred shareholders receive : If Fox declares cash dividends of $200,000 during the current year and there are no dividends in arrears, how much will all the preferred shareholders receive
What is the net present value of the project : Assuming that the rate of return available on risk-free investment is 2% and that the expected rate of return on the market portfolio is 12%
Develop synopsis of your outcomes for acquiring : Develop a synopsis of your outcomes for acquiring, developing, training, and leveraging on human capital within your organization.
Discuss criteria for assessing performance of a security : Discuss criteria for assessing performance of a security, namely, expected rate of return, standard deviation of rate of return, and coefficient of variation
Employee from performing their required duties : How could Christian perspectives prevent an employee from performing their required duties?
Relaxing collection efforts : The Boyd Corporation has annual credit sales of $2 million. Current expenses for the collection department are $40,000, bad-debt losses are 2.00%

Reviews

Write a Review

Business Management Questions & Answers

  Describe at least two innovations of telemedicine

For this discussion, you describe at least two innovations of telemedicine and how they impact patient care. In addition, you identify a medical subspecialty such as teleradiology or telecardiology and explain what it is and how it functions.

  Estimate risks of damage to the company

Tutor, many would say that a company should plan for events through some process that measures or estimate risks of damage to the company.

  Insisting that everyone calls

You feel confident on your language ability (you have studied German in high school) and you decided to use it. During introductions you want to break ice asking "Wie Geht's? and insisting that everyone calls you by your first name. Speculate as..

  Let further examine the negligence tort

Let's further examine the negligence tort. What is negligence, and how does it differ from intentional torts? When is there a duty to protect?

  Overall company performance

What has been Amazon.com's overall company performance been over the last 5 years?

  Make judgements on cases based on the evidence

Judges in courtrooms have to evaluate and make judgements on cases based on the evidence presented to them, and the Supreme Court is the final judgement.

  In your own word define public administration

In your own word define Public Administration. Then explain whether or not public administration should be separated form politics and why. Finally explain how the current presidential administration might be consider Wilsonian. Be specific and ju..

  Advise store managers about legal and personnel matters

As the Assistant Human Resources Manager, your job is to advise store managers about legal and personnel matters. The leadership at Good Grocers, Inc. considers you to be a legally astute manager, who consults with the corporation's attorney, as nece..

  Describe the relationship between privacy rights and rfid

Describe the relationship between privacy rights and RFID. Support your post with at least two peer-reviewed scholarly journal references.

  Multiple choice questions on business management

Multiple choice questions besed on business management.

  Describe some quality management techniques

Describe some quality management techniques that could be used to resolve quality issues. Providing at least two detailed examples.

  What is expected rate of return

If Richard Dean, an average investor is considering purchasing this stock at the market price, what is his expected rate of return

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd